How does the domiciliation decision affect mutual fund fees?

Arbeitspapier

In this paper, we analyze whether the domiciliation decision of mutual funds has an impact on fund fees. To explain the fee price-setting of mutual funds, we consider characteristics specific to funds, fund companies, and countries. We find that fees vary considerably across fund types and countries. Positive impacts of financial market integration can be confirmed, though funds set up under the UCITS directive are more expensive. If funds are sold in multiple countries it drives up fees; however, these higher costs for the investor are outweighed by economies of scale that can be generated if the domiciliation is in a specialized financial center, such as Luxembourg. Larger funds and funds that are set up by specialized or larger fund companies have significantly lower fees.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 11-085

Classification and Topics

• Classification: Wirtschaft ; Financial Aspects of Economic Integration ; International Financial Markets ; General Financial Markets: Government Policy and Regulation ; Financial Institutions and Services: General ; Production, Pricing, and Market Structure; Size Distribution of Firms
• Subject: Mutual Funds ; Financial Regulation ; Market Integration

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lang, Gunnar ; Köhler, Matthias
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/56028
• Last update: 10.03.2025, 11:42 AM CET